Strong progress in first year of transformation

“We made excellent progress in the first year of our plan to transform Burberry, while at the same time delivering financial performance in line with expectations. Riccardo Tisci’s first collections arrived in stores at the end of February and the initial reaction from customers is very encouraging. The implementation of our plan is on track, we are energised by the early results and we confirm our outlook for FY 2020.”

Marco Gobbetti, Chief Executive Officer

 

*See full announcement for definitions of alternative performance measures

• Successfully launched new creative vision including new product aesthetic
• Built brand heat and shifted consumer perceptions with improved social media reach, wider press coverage and organic endorsement from influencers
• Excellent wholesale sell-in of new collections including recent February runway
• Strong double-digit percentage growth year on year from Riccardo Tisci’s first collections, consistent with our ambitions
• Financial performance in line with guidance; savings ahead of plan

Outlook

• Confirming guidance for broadly stable revenue and adjusted operating margin at CER in FY 2020
• As planned, we anticipate a more pronounced weighting of operating profit in H2 relative to H1 in FY 2020 than in the prior year**
• Increasing cumulative cost saving guidance to £135m in FY 2022
• Announcing share buyback of £150m

**Full outlook on page 8 of the full announcement 

All metrics and commentary in the Group Financial Highlights and Business and Financial Review exclude adjusting items unless stated otherwise.

The following alternative performance measures are presented in this announcement: CER, adjusted profit measures, comparable sales, revenue excluding Beauty wholesale, free cash flow, cash conversion and lease-adjusted net debt.  The definition of these alternative performance measures are set out in the Appendix on page 12.

Cumulative cost savings are savings compared to FY 2016 operating expenses.

Certain financial data within this announcement have been rounded.

Enquiries

 

Please find the full announcement here.

Click here for more news